PepsiCo closes three U.S. factories and reduces product portfolio

PepsiCo is undergoing a major industrial reorganization in the United States, involving the closure of three factories and a reduction in its product portfolio. The company is targeting a 20% reduction in food SKUs to focus on high-demand items while eliminating low-performing flavors and packaging.

The restructuring affects several locations. In Liberty, New York, the closure of a facility primarily producing PopCorners impacted 287 workers. In Orlando, Florida, the Frito-Lay division closed a factory and a warehouse, affecting 454 employees, along with an additional 46 staff at a regional storage site. A long-standing facility in Rancho Cucamonga, California, which had operated for approximately 55 years, is also being closed as production shifts to more efficient units.

These decisions follow a decline in North American food sales during the second quarter of 2026 and reflect changing consumer habits, such as increased demand for high-protein and high-fiber options. The company is also facing pressure from investors, including Elliott Management, to improve industrial chain efficiency. To offset costs, PepsiCo is increasing investments in automation and productivity to simplify its operations.